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See Exhibit 29 for the rise in Brazil’s production of ethanol. Exhibit 29 Brazil’s Ethanol Production, 2000-2010E 500 442 450 402 Thousand Barrels per day 400 365 332 350 282 300 240 250 200 192 302 258 209 150 100 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Brazil Ministry of Agriculture; EIA Short Term Energy Outlook; internal EIA estimates. 107 Stage I mandated that 3,300 MW of renewable energy from biomass, wind, and small hydroelectric sources be grid-connected before the end of 2007 through a system of subsidies and incentives.

China’s Renewable Energy Law became effective on January 1, 2006, with 17 proposed initiatives, including preferential tax treatment and subsidies. 128 Among other policy tools, feedin tariffs have been incorporated and – where applicable – the grid operator must purchase all electricity produced by alternative energy generators that hold government permits. In addition, the Renewable Energy Development Fund Proposal became effective in May 2006, and includes voluntary reimbursement as well as low interest shortterm loans for the development of renewable energy.

75 To promote solar PV systems, the German government built on its previous programs and in 1999 instituted the 100,000 Solar Roofs Program, providing low-interest loans for the purchase and installation of PV systems. 78 Highlights: Specific Energy Technologies Electricity – Biomass, Wind, Photovoltaics, and Geothermal: The Roadmap predicts that Europe will miss the 21% target of total electricity produced from renewable energy sources by 2010. Instead, the EU is likely to see 19% of its electricity produced from renewable energy sources, with performance varying across sectors and among member states.

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Alternative Energy: Global Public Policy & Regulatory Challenges Fall 2007 by Global Markets Institute at Goldman Sachs and Center for Environmental Markets

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